Israel’s antitrust authority has approved the operational merger between alternative fixed line operators NetVision and Barak ITC, and corporate services provider GlobCall Communications. The transaction remains subject to it obtaining other approvals, however, and there is no assurance that the transactions will be consummated.
Barak is a subsidiary of Clal Industries which, alongside NetVision investors Discount Investment Corporation (DIC) and Elron Electronic Industries, is part of Israel’s powerful IDB Group. Under the terms of the deal, NetVision will purchase 100% of Barak in exchange for 46.5% its shares. Upon completion, NetVision will acquire all of GlobCall in exchange for 7% of the share capital of the merged NetVision-Barak company. The deals value NetVision at between USD122 million and USD142 million, Barak at between USD105 million and USD121 million, and GlobCall at between USD15 million and USD21 million.